Focus on the objective28 Jan 2024 15:19
Often people wrongly confuse their objective with that of the company. The objective for He1 is to make a commercial discovery. The objective for us retail investors is simply to make money. If we make 50% on a stock in one day, that is the same monetary value as making 50% over 3 months, 6 months or 12 months, holding that same stock or any other stock. In fact, making 50% in one day is obviously FAR better than waiting 3-12 months for the same return.
Now, most junior AIM stocks/explorers are built on hype and hope. Buy and hold is not always (rarely?) a winning strategy for most of them. But, there comes a time when these stocks can have their moment in the sun, during which they can offer you huge returns in a matter of days to weeks. THEN is a good time to be in the stock, regardless of all else (i.e. longer term fundamentals).
He1 is having such a moment in the sun. 10 000 trades and 300% rise in a week tells you that. Now we can debate the fundamentals here and questions such as: will it be a commercial discovery, will there be a fund raise, how many shares are there in issue, etc, etc. But when you consider what our only objective is (to make money), this is a completely erroneous approach on AIM and at this particular moment in time.
Right now, there are companies that already have the commercial discovery, that already have the cash, and all of the other things we are debating might be lacking with He1. But how many of these companies can or will offer you up to 300% returns in 12 months, let alone during one week? How many of these so called stronger fundamental stocks are likely to offer greater returns in 12 months than what He1 "could" still offer to you next week?
I have been negative about He1 for the last few months, because in that time, it has mostly been a pile of poo in terms of making money on it. So I have kept out. But right now, I can see it having its moment in the sun, providing an opportunity to make greater returns on it than most of the stocks with proven fundamentals, and in a much shorter period of time.
The herd of the last two days is still on the 'field of play' and likely will be until at least results are in. This means that NEXT WEEK (at least) presents a continuing opportunity to make decent money here. Yes, it might crash, but just as likely, if not more likely, is that it will make another attempt at the gap fill, and if successful, will take out 1p. That's another whopping profit opportunity staring you in the face. The opportunity won't be around for ever. It rarely is on AIM.
So all we have to focus on is what are we going to do for NEXT WEEK? Are you going to sit idle and debate the fundamentals, whilst the stock itself continues to outperform the companies with the strongest of fundamentals? Or are you going to get in on the opportunity, if it presents itself again next week? No brainer. All imo and GLA
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